Does anyone know of any other credit unions that are being as responsible and upfront about FATCA as Vancity?
In Understanding FATCA on their website, Vancity says:
While Vancity must comply with the law, we are committed to protecting our members’ right to privacy. By registering as a Local Client Base financial institution, we believe we have significantly reduced the impact of FATCA on the majority of our members. As a result of our Local Client Base classification, Vancity only needs to collect FATCA information and report on member accounts held by non-Canadian residents.
It appears to me most Canadian credit unions have the ability to register as a Local Client Base financial institution so they only report on non-Canadian residents. I would love to know if others are doing this.
Contrast Vancity with Meridian Credit Union::
3. What is a “U.S. person”?
If you want help in determining if you are a U.S. person for the purposes of FATCA, we suggest that you speak with a professional tax advisor. In general, attributes that generally cause an individual or business to be classified as a U.S. person include:
?U.S. citizenship; (anyone born in the U.S. and who has not renounced their U.S. Citizenship)
being a lawful resident of the U.S. (permanent resident); and/or
U.S. corporation, estate, or trust.
6. What type of information will be reported to the U.S. via the CRA?
The following information will be reported:
Identifying information about the account holder (name and address)
Account balance or value at the end of the year
Certain amounts paid or credited to the account
TIN (tax identification number)
Like Meridian, it seems Alterna has made no effort to take the local client base option, but plans to comply:
Under the IGA, financial institutions in Canada will report relevant information on accounts of U.S. persons to the Canada Revenue Agency (CRA) rather than directly to the IRS. The CRA will then exchange the information with the IRS through the provisions in the existing Canada-U.S. Tax Convention.
Alterna uses the standard definitions of U.S. persons.
We need to find out clearly which credit unions are taking the Vancity local client base approach and which are taking the full compliance model of Meridian. Is there anyone who is willing to take this on as a project?